Declaratory Relief

A declaratory judgment action may be brought by a plaintiff who is unsure of his legal right to recover from a defendant. This type of action is available to both an insured and an insurer to determine each party's rights, duties, obligations, and liabilities under an insurance policy.

Policy Construction Supporting Coverage

An insurance policy may contain provisions that state when coverage will be forfeited or which perils are excluded from coverage. Such provisions may be valid and enforceable, if unambiguous.

Underinsured and Uninsured Auto Coverage

Underinsured coverage refers to coverage available to an insured involved in an accident with a driver who has insufficient auto insurance coverage.

Purchasing Groups

The Liability Risk Retention Act of 1986 provides for the formation of purchasing groups to buy insurance. Such groups must be made up of members or companies with similar risk exposure due to their involvement in similar businesses. The groups must meet the regulatory requirements of the states in which they are organized, but, due to preemption by the Act, some regulatory requirements of other states in which the groups do business do not have to be met.

Third-Party Insurance

An insured may submit a claim to his insurer to recover under two different categories of insurance. The categories are based on whom the insurer is required to pay. If the insurer is required to pay the insured for his direct loss, the insurance classification is "first-party" insurance. If the insurer is required to pay a third party due to a loss caused by the insured to the third party, the insurance classification is "third-party" insurance. This article addresses third-party insurance only.